A Needed Pullback And Everything's a Trade

If the market wants to go higher we need more days like this. It's healthy. A month ago the shorts would have kicked this market down 350. My morning chart of GSI was a stellar performer considering the market, and I made some loot, not a lot, but some. I did a rare mid day post around 2pm opining that the market seemed heavy and citing my long in SKF. I had just gone long SKF. The market tanked 100 points and I caught SKF for 3 points. I freaking love when that happens. As I've said before, I'll take it any way I can get it. It was another great day at headquarters.

Solar stocks are weird, and in my opinion- DONE. If they can't make hay when the sun is shining, then when? Do they need oil at $175 to find their stones or what? I know I missed a lot in that group but they never caught my interest. As a trader I guess that is my bad.

I thought financials were due for a pullback earlier in the week and today they decided to do a little giveback. They creamed them all afternoon. HCBK and USB are my stocks and I will be watching them for strong bounces when the sector feels ready for a rally. Keep SKF at your side, all the volatility is not over in this group, far from it. I think MBIA reports next week and I believe there will be some wonderful long/short opportunities in the future. You just have to stay light on your toes.

It truly is a traders market. Today my good trader buddy who has been trading for about six months got a bit hammered and he called me a few times asking me where I thought he went wrong. He was long Fannie and Fredie in the afternoon and kept the positions almost until the close. Both stocks went out at near the lows of the day. The financials were weak all day but especially weak starting around 2 pm. I told him to be conscious of what is happening in the market as it relates to SECTORS. I would rather own a weak stock in a strong group than a strong stock in a weak group any day of the week. Why? Because when the programs hit, they sell or buy anything and everything and they will pulverize that stock you thought was "strong." They shoot first and ask questions later. Never try to outwit the market and go against the grain, you will lose every time. Follow the money flow, short or long.
Done rambling. Catch you guys later.

Financials And Oil

They took me by surprise today but I was able to jump on the train for a couple of nice trades. When FNM puked up some bad news and the market started to act teflon it was time to take a nibble. I caught USB and HCBK near the lows for a couple of nice trades. As you know I think the XLF is do for a rest but the opportunity presented itself. By the way the only banks I trade these days is USB and HCBK. Clearly two of the strongest and most conservative banks you can buy so my fear of a blindside is greatly reduced. By the way, when the financials do get some giddy up on a sustained basis, UBS looks beautiful over $35 on a breakout with volume. I'll chart that one soon. In the meantime I've been making money in the middle.

Oil at $122, I guess we'll be $125 in a matter of nanoseconds, although Goldman thinks $150-200 over the next six to twelve months. They were very right the last time. So much for the strong dollar play.

CHNR tried to get cute and run but it ran into a Chinese Wall, pun intended. It still looks good and it's one to keep a close eye on.

By the way these rebate checks are a joke.Thats about three fill ups each for a two SUV family over a period of a month. Ridiculous.